The federal government filed a motion to change a Chapter 11 bankruptcy to a Chapter 7 liquidation in the case of a Kalispell radio station owner.
Neal Jensen, assistant trustee with the Office of the U.S. Trustee Program in Great Falls, said John Stokes did not include numerous assets and debts in his bankruptcy filing.
“The omission of millions of dollars in claims and millions of dollars in assets should not be allowed without consequences,” Jensen wrote in his motion, which was filed on April 22. “It is submitted that with the huge discrepancies in asset values evidenced in this case thus far, a Chapter 7 trustee should be appointed to investigate and verify the true values of the real and personal property in this estate.”
Stokes has until May 6 to reply to the trustee’s motion.
Stokes referred questions to his attorney, Greg Duncan of Helena. Duncan could not be reached for comment Friday.
Stokes has owned the KGEZ radio station since 2000 and has hosted a daily talk show. Last year, he was ordered to pay $3.8 million in a defamation lawsuit for making malicious false statements about two neighboring businessmen on his radio show.
The government said Stokes did not include that liability in his bankruptcy case, even though that apparently prompted the bankruptcy filing.
The federal filing said Stokes owes $31,000 in property taxes, has not filed federal income tax returns since 1985, and did not disclose that he is having problems repaying the loan he used to buy KGEZ.
The federal filing also alleges Stokes greatly understated the value of assets, listing $38,300 worth of household goods as worth $1,725, listed only one shotgun instead of the dozens of guns trustees say he owns and did not list 17 collectible guitars worth $10,000 among his household goods. Trustees said he listed a pickup truck among his belongings, but not a recreational vehicle, two other cars, three all-terrain vehicles, three snowmobiles and two boats with trailers.
The government said Stokes did not list KGEZ’s station and property as an asset and gave contradictory information about his income, ranging from losing money, to making $74,000 annually.